In: Economics
Explain how an increase in nurses’ salaries affects the demand for medical care and/or supply of medical care. Indicate whether equilibrium price and quantity increase, decrease or stay the same.
Answer the following questions:
a. Explain why price elasticity is typically a negative number while income elasticity is typically a positive number.
b. The demand curve for haircuts at Tanas Hair Design is P = 40 – 0.40Q where Q is the number of cuts per week and P is the price of haircuts. At a price of $15, should Tanas raise the price of the haircuts? Why or why not? Show your work.
sorry for wrong order of parts (b part first and then a part )
If you like the work please appreciate thank you !